Abstract

RFID is an emerging hot technology in tracking and tracing physical objects. The market for RFID ranges from technological artefacts like tags and reader infrastructure to software solutions and supply chain services. One of the key business sectors that have seen the initial benefits of RFID applications is the Automobile sector through improvements in local processes related to better production control and increased handling efficiency. In recent years, there has been a palpable shift in the interest of global automobile Original Equipment Manufacturers (OEMs) towards India, stimulated by the increasing Indian market demand and manufacturing expertise.

The aim of the research is to evaluate the attractiveness of RFID adoption in the Indian Automobile sector by examining the RFID market trends, identifying the key opportunities and potential barriers for RFID adoption and the perceived profitability of the Indian Auto -RFID market. The former was evaluated largely by considering the market growth leveraging on the PEST framework. Market Profitability was determined based on Porter’s Five Forces Analysis. The results from the survey research clearly depicts that RFID has a good market growth, profitability among the Indian automobile sector. It will make their process easier and the Return on Investment for RFID will be high for adopters. As RFID adoption is still in the introduction and the growth level, it will have high market demand among the automobile sector in India. Likewise, the profitability levels are perceived by those in the industry to be high enough, although there is a considerable threat for new entrants into the market. However, this can prove to be beneficial for the first movers in the long run.